Despite the 2019 Travel and Expense Management Trends Report recording that 43% of businesses still use manual processes to record their expenses, expense management software is the true future of the space.
With expense management software providing businesses with a growing number of benefits, there is not much reason for businesses to not make the switch from manual processes to automated ones. Below are six benefits to using expense management software for businesses to consider when making the switch.
Simpler and More Organised Process
Expense management software effectively replaces paper-based processes, making expense management much simpler to organise and understand. Rather than sorting and filing through stacks of invoices and receipts, expense management software will record transactions in a digital format, and save the documents in a digital space automatically.
This makes the expense management process much faster as well, reducing both the time and cost of recording and processing expenses from that of paper-based expense management systems.
Efficient Employee Reimbursement
Employee reimbursements make for a major part of the expense management system. In fact, most expense management systems are only created to facilitate employee reimbursements after spendings made by an employee in the name of their business.
With online expense management software and products such as virtual corporated cards, employees no longer need to manually apply for reimbursements and the procedure can instead be automated. This will also help employees receive their out-of-pocket much faster and enhance their working satisfaction.
Elimination of Human Errors and Delays
Human errors and mistakes are unavoidable when processes are completed manually and with paper. Things will eventually get forgetoon or lost, and delays caused by sick leaves and holidays will also occur. With software, human errors and delays are completely eliminated, resulting in a predictable and reliable expense management system.
Enforcement of an Expense Policy
Although businesses can enforce their expense policy with direct constant regulation, policies that are embedded into expense management software are much easier to enforce. This is because softwares can simply prevent certain expenses and transactions (ones which go against company policy) to be made. Expense management software can also quickly cancel transactions and flag out-of-policy expenses automatically.
Streamlined Recording Process
Rather than having all employees gather their receipts and file them into a cabinet, expense management software applications allow employees to simply take pictures of their receipts, or save their online payments as invoices in the software.
This recording process is common in applications such as DiviPay, which streamline the transaction recording process for employees and accountants alike by syncing data with existing finance-related software.
Improved Accessibility and Visibility
Expense management software will also have accessible designs and display metrics to make navigation round the expense management process easier. Dashboards and categorised pages will help employees and other business personnel record their expenses and apply for employee reimbursements if necessary. Everything can be performed in one application – making for a convenient and simple way to access a business’ expense management system.
Expense management software can provide businesses with many benefits – including the six listed anova. In comparison to paper-based and manual expense management processes, software greatly improves efficiency and enhances the overall employee experience.